Angel Broking recommended 'Buy' on Tide Water Oil India with target price Rs 14,704 against current market price Rs 12,076.

Commenting on the investment rationale, the stock broker said, "The company is consistent gaining market share over the last several year and has a strong balance sheet with zero debt, healthy net cash position and delivers healthy return ratios. On the valuation front, the company is trading at a discount of more than 20% and 50% to PE valuation compared to its close peers like Gulf Oil Lubricants India and Castrol India respectively."

"We believe the company presents a good investment opportunity, at the current market price of Rs 12,076, the stock trades at a PE of 14.6x and 13.1x its FY2015E and FY2016E EPS of Rs 828.6 and Rs 919.0, respectively. We initiate coverage on the stock with a Buy recommendation and target price of Rs 14,704, based on 16x FY2016E EPS, indicating an upside of ~22% from the current levels," it said.

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